Advertising

Linked presentation

Advertising Agency The 4 holding marketing communications companies Omnicom: • BBDO, DDB, TBWA (ad agencies)• Omicom media group (media specialist)• Diversified Agency Services (specialised communication outfit – Direct response, Sales

promotion, PR, Interactive agencies) WPP: • JWT, O&M, Grey, Rediffusion, (ad agencies)• Group M, Mindshare (Media specialist)• IMRB International, Grassroots ( specialised outfit) Interpublic: • McCann Erikson, Lowe Lintas, Future brand, Draftfcb (ad agencies)• Initiative Media, UM (Media specialist)• Kaleidoscope (Specialised communication outfit) Publicis: • Leo Burnett, Saatchi&Saatchi, Starcom (ad agencies)• Publicis Groupe Media (media specialist)• Pembroke communications, Publicis D (specialised communication- SP,DM,BTL)

Advertising Agency -Types

Full service agencies follow departmental & group system. Two types of FS agencies are:

General Consumer Agencies Industrial Agencies (B2B agencies) A La Carte Service agencies (Creative HotShops) Strategy development, Creatives, Media Planning House AgenciesEg: Lintas (HUL) – now LOWE Lintas, Mudra (Reliance)

Agency -Department Functions Account Planning: Link between agency and client (contact department) Explain the client’s demands to specialist departments Get client approval at each stage of work Supervise work to ensure quality and timeliness Creative Services: Most visible input in advertising Two areas – Copy writing and Art direction Media Services: Match the target customer’s profile with the profile of media

audience Evaluate media in terms of efficiency, cost, reach Research department: Study the effects of previous promotional activities of the product Use information to win clients

Communication as Advertising Objective

Conative

Affective

Cognitive

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Point-of-purchaseRetail store ads

Competitive adsArgumentative copy

“Image” copyGlamour appeals

Descriptive copyClassified adsSlogans, Jingles

Teaser campaigns

Communication as Advertising Objective

90% Awareness

70% Knowledge

40% Liking

25% Preference

20% Trial

5% regular

use

Establishing the Budget Critical question – how much to spend on

promotions Communication budget – expense v/s

investment Budget revisions – Every year, With new product

introductions, changes in external or internal factors

Sales response models Concave-downward function S-shaped response function

Establishing the Budget

Budgeting Approaches are of two types: Top-Down Build-Up

Promotion budget approved by top

management

Top management sets spending limit

Promotion budget stays within spending limit

Promotion objectives set

Activities to achieve objectives are planned

Costs of promotion activities accounted forJudgemental approaches

Pre-determined budget allocationNot linked to advertising objectives, tasks

Objective setting and budgeting go hand-in-hand

Budget such that promotion strategies can deliver objectives

Establishing the Budget Top-Down approaches Affordable method Allocates amount left after allocation to other areas to promotion. Likelihood of under/over-spending high as task not assessed Arbitrary allocation No obvious advantages, budget determined based on judgement No objectives set, Purpose of advertising ignored Percentage of sales Most commonly used, but not most effective Advertising budget based on sales of product Amount fixed – percentage of rupee sales, amt of unit product cost allocated to promotion * number of units

sold Financially safe, keeps ad spending under control Difficult to implement for new products – lack of sales history, Low sales – cut in budgets Competitive parity Establishing budgets basis competitors promo expenditure to tap collective industry wisdom Minimises marketing warfare, unrealistic ad expenditure Ignores competitive advantage, market adaptation realised only after competitor advantage Return on Investment method Because advertising causes sales Promotions seen as investments, therefore expected to earn certain return Difficult to employ due to difficulty in assessing returns on promotion

Establishing the Budget

Build-Up approach Objective and Task method has 3 steps:

Establish objectives (Create awareness of

product among 20 % of target market)

Determine specific tasks(Advertise in television, radio and newspapers)

Estimate costs for different tasks

Trade shows: Rs.1 crTrade journals: Rs. 25

lakh Direct mail: 10 lakh

Re-evaluate objectives(consumer awareness created, now induce

trial)

Allocating the Budget After establishing budget, time to allocate Involves deciding how this budget is divided between

markets/products/promotional elements Factors based on which Allocation done: Shift to IMC Increased target selectivity, new media More impact with same budget Individual company/ad agency policy Agency/client favour certain promotional program Market size Smaller markets – easier to cover, less expensive Larger markets – target dispersed, more expensive Market potential Market share goal

Decrease – find defensible niche

Attack with large SOV

Increase to defend

Maintain modest spending premium

Market share

Competitors SOV

aDVErtising CoMmuniCatioN pRocEss

Advertising strategy(Game plan) : Outlines what advertiser will do to solve the communications-related problem (depicts the benefit of using the product)

Fevikwik problem: Show adhesive nature of product Big idea: The idea that advertisers select to represent the

message. Use of metaphoric way to show bonding power Creative strategy: Deals with the physical form of

advertising – story, script, copy, art, layout and illustration, music, words, phrases, colour, production

Creative tagline, use of wit/humor, storyline Advertising tactics: Short-term decisions about specific,

tangible tasks related to advertising process High spend on television advertising.

Target customer for i-phone Age:25 – 40 yrs Sex: Male and Female (more males 70%) Family income: Rs.8 lakh + per annum Education: Graduate, PG or above Occupation: Businessmen, middle or senior level managers Family size: Single, dual income families, small in size (0-1

child) Lifestyle: Basic technical knowledge, Brand conscious,

Socially active in parties and get togethers, active net users Personality: Openness to try new things, Opinion leader of

sorts, Independent and rebellious Hobbies: Travel, Net surfing, blogging,online shopping Reading Habits: Read computer magazines, Archies comics

etc

Creative Process Preparation: Learn general trends and conditions in marketplace Product specific research: About product ,

competition, target audienceEg: Taj Group’s Budget Hotels (Ginger) Incubation: Getting away Illumination: Solution in sight Verification: Evaluates ideas, rejects inappropriate

ones, refines the selected ones eg: Portfolio tests and other forms of pretesting

Advertising appeals Rational Focus on consumer’s practical or functional need for product Emphasis on features of product, logic of persuasion Features, Competitive advantage, favourable price, news, popularity

appeal Emotional Connect with consumers social or psychological need for buying the

product Use of fear (HDFC), humor, sex, Agony(Itchguard), Moral appeal(Havells)

can put customers in a favourable frame of mind Eg: Heinz Housewife ad (emphasises viscosity of product) Rational+Emotional: Because functional product may offer an emotional benefit Eg:MasterCard ‘priceless’ campaign/ Women’s Horlicks Other appeals: Teaser advertising (Eg: Frooti’s Digen Verma ads)

Creative Execution styles Factual (eg: SCMS) Often used with rational appeals, where focus is on product

features Scientific (eg: Lifebuoy) Scientific evidence presented in ad Demonstration (eg: Vivel ActivFair, vim drop) Illustrates the advantage of product by showing it in use Comparison (eg: Pepsodent ) Directly communicating a brand’s advantage over competition Testimonial (eg: Ayucare, Vanishmax ) Person praises product on basis of personal experience from use Slice of life (eg: Yellow pages/FedEx) Based on problem/solution approach Depict daily life problem and how product can resolve it Helps register the product benefit in the consumer mind

Creative Execution styles Spokesperson (Eg: Colgate uses Dental Association) Lifestyle (Eg: Raymond –The complete Man) Animation (eg: Boomer Bubble Gum) Animated scenes or fictional characters are created to attract attention Personality symbol (eg: , Appy Fizz – The cool drink to hang out with) Creating a central character capable of delivering the message and with

which product can be identified. Fantasy (eg: DeBeers ) Suitable for image advertising- Escaping into another world, lifestyle Dramatisation (eg: Sunlight washing powder, Nestle Munch – Ramu’s

shop) Focus on telling story with product/service as star Slice-of-life with Use of drama is highlight Musical (eg: Airtel jingle or Kingfisher jingle centered ad) Vignette: (eg: Max New York) Series of short incidents tied together to make the point Combination

Creative Strategy – Print(Headline)Headline Leading position of ad – often set apart from rest

of message Put forward the main theme or proposition in

few words, communicate advertising message along with illustration

Aids in further segmentation of customers by addressing specific needs or wants

Research Statistics: 20% read the body copy Types: Direct and Indirect headlines Subheads: Enhance readability,skimming by

highlighting key point

Creative Strategy – Print(Headline) Functions of Headlines: Grab reader’s attention Summarise selling proposition: Reader should know big idea after reading it Select the prime prospect (Eg: Single?) Offer a benefit (Eg: Fairness in 7 days) Emphasise brand wherever possible Eg: Introducing seduction on wheels..The Hyundai Verna Synergise with visual

Types of Headlines: Benefit Questions News Challenge Factual Associations Curiosity Claim Advice Command

Creative Strategy – Print(Copy)

Body Copy Main text portion of a print ad Must be long enough to communicate

message, short enough to retain interest Matter depends on advertising appeal and

execution style used (eg: ad )

Creative Strategy- Print(Copy) Types of BodyCopy/ Styles of Body copywriting Customary approach: Opening and closing paragraphs-max attention Factual nature - Written as anonymous source Open idea – develop it – give call for action Story approach: If story gripping, readers enticed to read more Preferably in first or third person Dialogue approach: Makes copy more enticing. Use direct speech Bulleted approach: Driving home ‘plentifulness of benefits/features’ Poetic approach

Creative Strategy – Print (Visual)

Illustration/Visual elements: Must attract attention, synergise with

headline and body copy to be effective Decisions: Brand marks to use, Colours to

use, type of visual to use

Creative Strategy –Print (Visual) Types of Visuals: Snapshot of product (eg: Hotel) Product-in-use (Eg: 1-2-3 ads) Close-up of critical part (Eg: Cars) The target customer (Eg: Longines and Ash)

Benefit of using product (Eg: Pampers Happy Babies,Garnier)

Ills of not using product (Eg: D’Cold) Before and after (Eg: VLCC) Metaphor for product (Eg: Strepsil) Comparison (Eg: Dove) Visual alone

Class activity Visual imaginary?

Product: Asian PaintsHeadline: You’ll find every colour imaginable

Product: Malayala ManoramaHeadline: Let your brand go Places, this Onam

Product: Nissan MicraHeadline: Shift the way you move

Product: Maruti RitzHeadline: Live the moment

Product: Post-it-NotesHeadline: Don’t forget

Creative Strategy – Print(Layout)

Layout Layout shows where each part of the ad will

be placed Blends each element into a finished

advertisment Layouts are presented to clients for

visualising final appearance before print production

Creative Strategy – Print(Layout) Types of layout Picture Window: Visual covers most of ad Silhouette: Shape non-linear outline for copy Frame: Visual used to border copy Comic strip: Elements linearly arranged in strip Rebus: Visual and copy chained one after another Copy Heavy: Accentuates type , all copy ad Type specimen: Distinct type or font selection Circus: Random, jumbled up arrangement Mondrian: Visuals, headline, copy in boxy format Grid: Visuals in evenly divided grids Axial: Visual in centre, copy floats around it

Activity Assignment 1Picture perfect

Choose any 3 print ads. Convert them into three different layout formats

of your choiceEvaluate the ads on: The headline type Is tagline effective? Why? What type of visual is used? Which copywriting style is used? How Can u improve the ad?

Creative Strategy - Television

TVCs combines sight, sound and motion to create right impact

Video: Attracts viewer attention, communicate

message Focus areas: Product, presenter, settings,

actors, acting skills, lighting, graphics, colours, brand marks

Creative Strategy - TelevisionAudio Use of voice-over (message narrated by invisible

announcer) Music provides pleasant background and mood

(needle-drop) or music helps selling point (Eg: Airtel )

Jingles are catchy songs that carry advertising theme (Eg: Sunlight)

Focus areas: Voice, music, sound effects

Creative Strategy - Television Planning : Decide the appeal and execution style to be used Script – a written version of the ad that

describes audio and video content Audio – voices, music, sound effects Video – camera angles, scenes, transitions Storyboard – Series of drawings that present

visual scenes along with description of audio Gives production team and advertiser look and

feel of commercial

Creative Strategy - Television

Production:

Preproduction

• Selecting director• Choose production Co.• Cost estimation• Production timetable - Set construction - Location, Length - Agency/client approval - Casting, Costumes - Art decisions• Preproduction meeting

ProductionLocation shoots Night/weekend shoots

Post production

•Editing• Recording SFX• Audio/video mixing• Client/agency approval• Release

Source factor Source credibility Direct source & Indirect source Expertise and trustworthiness of source Persuasion by Internalization – integration into belief system ( forever)Eg: Hairomax (Padmanabha Vaidyar) Use of corporate leaders as spokesperson(Eg: ATLAS) Credibility more effective when claim questionable. Source attractiveness Similarity, familiarity, likability (Eg: UNINOR) Persuasion by Identification – creates attitude (temporary) Use of celebrities: avoid overshadowing, overexposure, risk to advertiser,

celebrity-product mismatch Source Power Source has perceived control, concern and scrutiny Persuasion by Compliance - superficial compliance (temporary or permanent) More usable in personal channels only

Beauty of source?Ash in Longines

Multiple celebrityClinic All Clear

Message Factor Order of presentation Primacy and recency effects (Eg: Asli Nimboo) Strong – weak – Strong selling points Display brand name/brandmarks at beginning – repeat at end to enhance recall Conclusion drawing Open-ended or close-ended message? – basis target audience, immediacy of

impact (Eg: Indian Army – Do you have it in you?, Political campaign) Message sidedness One-sided or two-sided message (Eg: Sprite “ Sprite quenches thirst..everything

else is nonsense” ) Refutation Presents both sides of issue and refutes opposing viewpoint(eg: Coca-Cola) Verbal and visual messages Verbal appeal + support of visual image = compelling message Incongruent visual and verbal appeal (greater recall) Eg:

Channel factors Personal v/s Non-personal communication channels: Personal channels more persuasive Inter-media information processing: Self paced v/s externally

pacedEg: Draw attention – redirect ( Eg: Bajaj Allianz) Effects of context and environment: The image of media vehicle influences audience reaction (Eg: Coca-

Cola’s policy on new channels) Content advertising and ‘feel good programming’ (Eg: Pre-selling

movies to broadcasters) Clutter Eg: Vanitha mag Too many messages competing for attention annoys customer Pressure from advertisers for top-rated shows (Eg: Big boss, KBC) Trend towards shorter commercials- Growth of 15 sec – 30 sec

spots – use creativity to break through ‘clutter’

Testing @ Concept generation

Concept testing Modes used? – Focus groups, mall intercepts Items under scrutiny?

Rough, prefinished commercial testing

Animatics or photoboards are usually shown Popular tests used : Consumer juries,

comprehension tests, reaction tests Personal interviews, focus groups (sample

sizes 50 – 200) Disadvantages

Pretesting of Finished Ads

Finished ad is used , still scope for modifications exist

Methods used for print: Dummy advertising vehicles, Portfolio tests

Methods used for Broadcast media: Theatre tests, On-Air tests

Methods used for both: Physiological tests (pupilometrics, electrodermal response)

Market Testing of Ads

Finding out how the ad is doing in the field. Day-after-recall tests Inquiry tests